Essay
Vast Horizons has 20,000 outstanding shares of common stock with par value of $1.50 per share and market price on January 1 of $30.
A. Show the financial statement effects of the two independent equity transactions in the template below.
1. January 15: 6% stock dividend paid to common shareholders with current market price at $30
2. June 15: 28% stock dividend paid to common shareholders with current market price at $80
B. How have these two transactions changed the overall valuation of the firm?
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A.
1. Common stock = 20,000 shares × 6...View Answer
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Correct Answer:
Verified
1. Common stock = 20,000 shares × 6...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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